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Bidding war? Euronet makes offer for MoneyGram

Global electronic payments processing firm Euronet on Tuesday revealed a bid to acquire money-transfer service MoneyGram International in a move that could scuttle a previous deal with an affiliate of Alibaba.

Global electronic payments processing firm Euronet on Tuesday revealed a bid to acquire money-transfer service MoneyGram International in a move that could scuttle a previous deal with an affiliate of Chinese e-commerce giant Alibaba.

Kansas-based Euronet said its bid for MoneyGram is worth about 15% more than Ant Financial Services Group's proposed acquisition, which MoneyGram had already agreed to and publicly revealed in late January.

The bidding war could shake up the global market for money transfer, ATM and credit-card processing services.

In a letter to MoneyGram released publicly Tuesday, Euronet CEO Michael Brown said his company's offer is superior because it provides additional chances for growth and would not have to be approved by a U.S. panel that must authorize transactions in which certain foreign entities acquire American companies.

"We are convinced that a combination of our two companies presents a highly compelling opportunity for MoneyGram," Brown said in the letter. "Our complementary businesses and cultures would create a very well-positioned global payments company that would benefit customers and employees in the United States and around the world."

It was not immediately clear whether MoneyGram could withdraw from the Ant Financial tie-up without consequences. Major corporations often include so-called breakup fees in merger agreements, requiring one side to pay if it pulls out of the deal.

Representatives for MoneyGram and Ant Financial could not immediately be reached for comment.